Correlation Between Akcansa Cimento and Nigbas Nigde
Can any of the company-specific risk be diversified away by investing in both Akcansa Cimento and Nigbas Nigde at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Akcansa Cimento and Nigbas Nigde into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akcansa Cimento Sanayi and Nigbas Nigde Beton, you can compare the effects of market volatilities on Akcansa Cimento and Nigbas Nigde and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Akcansa Cimento with a short position of Nigbas Nigde. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akcansa Cimento and Nigbas Nigde.
Diversification Opportunities for Akcansa Cimento and Nigbas Nigde
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Akcansa and Nigbas is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Akcansa Cimento Sanayi and Nigbas Nigde Beton in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nigbas Nigde Beton and Akcansa Cimento is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Akcansa Cimento Sanayi are associated (or correlated) with Nigbas Nigde. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nigbas Nigde Beton has no effect on the direction of Akcansa Cimento i.e., Akcansa Cimento and Nigbas Nigde go up and down completely randomly.
Pair Corralation between Akcansa Cimento and Nigbas Nigde
Assuming the 90 days trading horizon Akcansa Cimento is expected to generate 3.56 times less return on investment than Nigbas Nigde. But when comparing it to its historical volatility, Akcansa Cimento Sanayi is 1.79 times less risky than Nigbas Nigde. It trades about 0.04 of its potential returns per unit of risk. Nigbas Nigde Beton is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,564 in Nigbas Nigde Beton on September 2, 2024 and sell it today you would earn a total of 296.00 from holding Nigbas Nigde Beton or generate 18.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akcansa Cimento Sanayi vs. Nigbas Nigde Beton
Performance |
| Timeline |
| Akcansa Cimento Sanayi |
| Nigbas Nigde Beton |
Akcansa Cimento and Nigbas Nigde Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akcansa Cimento and Nigbas Nigde
The main advantage of trading using opposite Akcansa Cimento and Nigbas Nigde positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akcansa Cimento position performs unexpectedly, Nigbas Nigde can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Nigbas Nigde will offset losses from the drop in Nigbas Nigde's long position.| Akcansa Cimento vs. Qnb Finansbank AS | Akcansa Cimento vs. Gentas Genel Metal | Akcansa Cimento vs. Sodas Sodyum Sanayi | Akcansa Cimento vs. Koza Anadolu Metal |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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